Emerging Markets Value Fund

Our Emerging Markets Value Fund adheres to the same disciplined, deep value investment philosophy and process as all of our products. Fundamental research is the core of our approach. We focus our search for investment ideas on companies that are experiencing difficulties that our research suggests are likely to be temporary. We believe that very poor profitability tends not to persist. Over time, cycles turn, management takes actions, costs are cut, and excess industry capacity diminishes. Therefore, we apply intensive research to these companies in an effort to determine whether the problems that caused the earnings shortfall are temporary or permanent. Generally speaking, the most undervalued companies receive the largest weightings. These are the companies that rank best on the basis of our estimate of normalized earnings relative to the current price of the stock.

Our investment process is bottom-up, one stock at a time. We do not value sectors or countries in aggregate nor do we make explicit allocations to sectors or countries, though we limit individual security, sector and country weights to control for risk.

We generally hold 40-80 stocks in companies from the emerging and frontier markets.



Emerging Markets Value Fund

Characteristics as of 6/30/17

  Emerging Markets Value MSCI Emerging Markets Index
Price/Earnings (1 Year Forecast) 10.8x 12.8x
Price/Book 1.0x 1.7x
Median Market Cap ($M) $9,350 $5,377
Weighted Average Market Cap ($M) $42,496 $67,807
Number of Stocks 64 845


Sector Weights as of 6/30/17

Sector   Emerging Markets Value MSCI Emerging Markets Index
Consumer Discretionary 10% 11%
Consumer Staples 3% 7%
Energy 11% 7%
Financials 21% 24%
Health Care 0% 2%
Industrials 7% 6%
Information Technology 21% 27%
Materials 9% 7%
Real Estate 0% 3%
Telecom Services 6% 5%
Utilities 4% 3%
     

Sector weights adjusted for cash - may appear higher than actual.


Region Concentration as of 6/30/17

  Emerging Markets Value MSCI Emerging Markets Index
1. Asia 65% 73%
2. Europe 15% 7%
3. Latin America 8% 12%
4. North America 7% 0%
5. Africa/Middle East 5% 8%

Country weights adjusted for cash - may appear higher than actual.

 

Top Ten Holdings as of 6/30/17

  % of Net Assets
China Mobile, Ltd. 3.7%
POSCO 3.6%
Antofagasta PLC 3.1%
Samsung Electronics Co., Ltd. 3.0%
Taiwan Semiconductor Manufacturing Co. 3.0%
Hyundai Heavy Industries Co., Inc. 2.6%
Hon Hai Precision Industry Co., Ltd. 2.6%
Standard Chartered PLC 2.6%
Bangkok Bank Public Co., Ltd. - NVDR 2.5%
Rosneft Oil Co. - GDR 2.5%
Total 29.2%


Performance as of 6/30/17

  Annualized
  QTR
2017
YTD
2017
One
Year
Three
Year
Since Inception
Mar 31, 2014
PZIEX - Institutional Class 4.91% 18.63% 33.19% 0.20% 1.94%
PZVEX - Investor Class 5.02% 18.63% 32.84% -0.05% 1.68%
MSCI Emerging Markets Index 6.27% 18.43% 23.75% 1.07% 2.99%

 

PZIEX Expense Ratio: Gross: 2.89%, Net: 1.26%*
PZVEX Expense Ratio: Gross: 3.20%, Net: 1.61%*


Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an invest- ment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 844.PZN.1996 (844.796.1996). The fund imposes a 1.00% redemption fee on shares held 60 days or less. Performance does not reflect the redemption fee and, if it had, returns would have been lower.

*Contractual fee waivers through 6/27/18

Emerging Markets Value Fund - Portfolio Managers


Rakesh Bordia

Caroline Cai

Allison Fisch

John P. Goetz

Tenure at Pzena:

Experience:

Education:

Principal, Portfolio Manager

9 years

18 years

Indian Institute of Technology, Bachelor of Technology in Computer Science and Engineering

Principal, Portfolio Manager

12 years

18 years

Bryn Mawr College, BA in Economics
Chartered Financial Analyst (CFA)

Principal, Portfolio Manager

15 years

17 years

Dartmouth College, BA in Psychology

Managing Principal, Founding Partner, Co-Chief Investment Officer and Portfolio Manager

20 years

37 years

Wheaton College, BS in Mathematics
Kellogg School at Northwestern University, MBA

Tenure at Pzena:

9 years

12 years

15 years

20 years

Experience:

18 years

18 years

17 years

37 years

Education:

Indian Institute of Technology, Bachelor of Technology in Computer Science and Engineering

Bryn Mawr College, BA in Economics
Chartered Financial Analyst (CFA)

Dartmouth College, BA in Psychology

Wheaton College, BS in Mathematics
Kellogg School at Northwestern University, MBA

Price / Earnings (1-Year Forecast) is a measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. Price / Book is a valuation ratio of a company's current share price compared to its book value. Median Market Cap is the point at which half of the market value of a portfolio is invested in stocks with a greater market cap, and consequently the other half is invested in stocks with a lower market cap. Weighted Average Market Cap is the average firm market capitalization weighted by security weight.

The MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 23 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and UAE. You cannot invest directly in an index.

Fund holdings, Regional and Sector exposures and characteristics are as of the date shown and are subject to change at any time. As a result, the Fund's current and future holdings, Regional and Sector exposures and characteristics may vary substantially from the information shown. No recommendation is made regarding the advisability of buying or selling any security.





Before you invest in Pzena Funds, please refer to the statutory and summary prospectuses for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectuses by calling 1-844-PZN-1996 (1-844-796-1996) or by clicking on statutory prospectus or summary prospectus . The prospectuses should be read carefully before you invest or send money.

Mutual fund investing involves risk. Principal loss is possible. Investments in small-and mid-cap companies involve additional risks such as limited liquidity and greater volatility than larger companies. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in Emerging Markets.

Pzena Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Investments in REITs are subject to the risks associated with the direct ownership of real estate.

The Pzena Funds are distributed by Quasar Distributors, LLC.